By ANDREW TAYLOR
Associated Press Writers
WASHINGTON – House Democrats on Friday salvaged a bill to continue providing unemployment checks to people out of work more than six months and revive tax breaks popular with families and businesses.
But spending cuts demanded by Democratic moderates unhappy about voting to increase the deficit will mean layoffs next year by state governments and no health insurance subsidies for people laid off after Memorial Day.
The House approved the legislation in a 215-204 vote that capped a turbulent week for Democratic leaders, who were forced to kill $24 billion in aid to cash-starved states and $7 billion for health insurance subsidies for laid-off workers. The programs were created by last year’s economic stimulus bill and Democratic leaders had wanted to extend them.